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United States. Congress. House. Committee on the J.

Lobbying Disclosure Act of 1993 : hearing before the Subcommittee on Administrative Law and Governmental Relations of the Committee on the Judiciary, House of Representatives, One Hundred Third Congress, first session, on H.R. 823 ... March 31, 1993 online

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Online LibraryUnited States. Congress. House. Committee on the JLobbying Disclosure Act of 1993 : hearing before the Subcommittee on Administrative Law and Governmental Relations of the Committee on the Judiciary, House of Representatives, One Hundred Third Congress, first session, on H.R. 823 ... March 31, 1993 → online text (page 1 of 27)
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LOBBYING DISCLOSURE ACT OF 1993



HEARING

BEFORE THE

SUBCOMMITTEE ON ADMINISTRATIVE LAW
AND GOVERNMENTAL RELATIONS

OF THE

COMMITTEE ON THE JUDICIAKY
HOUSE OF REPRESENTATIVES



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)NE HUNDRED THIRD CONGRESS

FIRST SESSION
ON

xi.Iv. 823

LOBBYING DISCLOSURE ACT OF 1993



MARCH 31, 1993



Serial No. 55




Printed for the use oi the Co;



on the Judiciary



72-853



U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1994



For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, DC 20402
ISBN 0-16-046193-6



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HEARING

BEFORE THE

SUBCOMMITTEE ON ADMINISTRATIVE LAW
AND GOVERNMENTAL RELATIONS

OF THE

COMMITTEE ON THE JUDICIARY
HOUSE OF REPRESENTATIVES

1)NE HUNDRED THIRD CONGRESS

FIRST SESSION
ON

xx.Iv. 823

LOBBYING DISCLOSURE ACT OF 1993



MARCH 31, 1993



Serial No. 55




Printed for the use of the uoi



on the Judiciary



72-853



U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1994



For sale by the U.S. Government Printing Office
Superintendent of Documents, Congressional Sales Office, Washington, t)C 20402
ISBN 0-16-046193-6



COMMITTEE ON THE JUDICIARY



JACK BROOKS,

DON EDWARDS, California
JOHN CONYERS, Jr., Michigan
ROMANO L. MAZZOLI, Kentucky
WILLIAM J. HUGHES, New Jersey
MIKE SYNAR, Oklahoma
PATRICIA SCHROEDER, Colorado
DAN GLICKMAN, Kansas
BARNEY FRANK, Massachusetts
CHARLES E. SCHUMER, New York
HOWARD L. BERMAN, CaUfomia
RICK BOUCHER, Virginia
JOHN BRYANT, Texas
GEORGE E. SANGMEISTER, Illinois
CRAIG A. WASHINGTON, Texas
JACK REED, Rhode Island
JERROLD NADLER, New York
ROBERT C. SCOTT, Virginia
DAVID MANN, Ohio
MELVIN L. WATT, North CaroUna
XAVIER BECERRA, California



Texas, Chairman

HAMILTON FISH, Jr., New York
CARLOS J. MOORHEAD, California
HENRY J. HYDE, IlUnois
F. JAMES SENSENBRENNER. Jr.,

Wisconsin

BILL McCOLLUM, Florida
GEORGE W. GEKAS, Pennsylvania
HOWARD COBLE, North CaroUna
LAMAR S. SMITH, Texas
STEVEN SCHIFF, New Mexico
JIM RAMSTAD, Minnesota
ELTON GALLEGLY, California
CHARLES T. CANADY, Florida
BOB INGLIS, South Carolina
BOB GOODLATTE, Virginia



Jonathan R. Yarowsky, General Counsel

Robert H. Brink, Deputy General Counsel

Alan F. Coffey, Jr., Minority Chief Counsel



Subcommittee on Administrative Law and GtovERNMENTAL Relations

JOHN BRYANT, Texas, Chairman '■^

DAN GLICKMAN, Kansas GEORGE W. GEKAS, Pennsylvania

BARNEY FRANK, Massachusetts JIM RAMSTAD, Minnesota

HOWARD L. BERMAN, CaUfomia BOB INGLIS, South CaroUna

DAVID MANN, Ohio BOB GOODLATTE, Virginia
MELVIN L. WATT, North CaroUna

Paul J. Drolet, Counsel

David A. Naimon, Assistant Counsel

Raymond V. Smietanka, Minority Counsel




(II)



CONTENTS



HEARING DATE



Page
March 31, 1993 1

TEXT OF BILL

H.R. 823 5

OPENING STATEMENT

Bryant, Hon. John, a Representative in Congress from the State of Texas,
and chairman, Subcommittee on Administrative Law and Governmental
Relations ^

WITNESSES

Aron, Nan, executive director. Alliance for Justice 205

Christy, James, director. Federal relations, and Washington coimsel, Air
Products & Chemicals, Inc., on behalf of the National Association of Manu-

fflcturcrs • ^^

Chwat, John, president, Chwat & Co., Inc 109

Eskridge, William M., Jr., professor, constitutional law and legislation,

Georgetown University Law Center 232

Gilbert, Pamela, director. Public Citizen's Congress Watch 177

Hudson, J. William, president. International Association of Refrigerated

'XX^Of^ j^Q^^^g ^ O"

Levin, Hon. Carl, a Senator in Congress from the State of Michigan 45

McBride, Ann, senior vice president, Common Cause 158

Meeds, Lloyd, chairman. Ethics Committee, American League of Lobbyists 69

O'Neill, Albert C, Jr., chair, Section on Taxation, American Bar Association .. 77

Susman, Thomas M., attorney, Ropes & Gray 216

Troyer, Thomas A., counsel. Independent Sector 134

Woods, Jeanne, legislative counsel, Washington office, American Civil Lib-
erties Union 252

LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING

Aron, Nan, executive director. Alliance for Justice: Prepared statement 207

Bryant, Hon. John, a Representative in Congress from the State of Texas,
and chairman. Subcommittee on Administrative Law and Governmental
Relations: Letter from the White House dated March 31, 1993 2

Christy, James, director. Federal relations, and Washington counsel, Air
Products & Chemicals, Inc., on behalf of the National Association of Manu-
facturers: Prepared statement 101

Chwat, John, president, Chwat & Co., Inc.: Prepared statement HI

Eskridge, William M., Jr., professor, constitutional law and legislation,
Georgetown University Law Center: Prepared statement 234

Gilbert, Pamela, director. Public Citizen's Congress Watch: Prepared state-
ment •;•;;•■;••. r "j

Hudson, J. William, president. International Association of Refrigerated
Warehouses: Prepared statement 191

Levin, Hon. Carl, a Senator in Congress from the State of Michigan:

Prepared statement ••• .• °1

Prepared statement of Common Cause before the Senate Subcommittee
on Oversight of Government Management, March 26, 1992 48

(ni)



IV

Page

McBride, Ann, senior vice president, Common Cause: Prepared statement 160

Meeds, Lloyd, chairman. Ethics Committee, American League of Lobbyists:

Prepared statement 71

O'Neill, Albert C, Jr., chair, Section on Teucation, American Bar Association:

Prepared statement 79

Susman, Thomas M., attorney. Ropes & Gray: Prepared statement 218

Troyer, Thomas A., counsel. Independent Sector Prepared statement 136

Woods, Jeanne, legislative counsel, Washington office, American Civil Lib-
erties Union:

Prepared statement 254

Letter to Chairman Bryant, from ACLU, dated November 17, 1993 267

APPENDIX
Material submitted for the hearing record 271



LOBBYING DISCLOSURE ACT OF 1993



WEDNESDAY, MARCH 31, 1993

House of Representatives,
Subcommittee on Administrative Law

AND Governmental Relations,

Committee on the Judiciary,

Washington, DC.

The subcommittee met, pursuant to notice, at 10:06 a.m., in room
2237, Raybum House Office Building, Hon. John Bryant (chairman
of the subcommittee) presiding.

Present: Representatives John Bryant, Dan Glickman, Barney
Frank, Howard L. Berman, David Mann, Melvin L. Watt, George
W. Gekas, Jim Ramstad, and Bob Inglis.

Also present: Representative Mazzoli.

Staff present: David A. Naimon, assistant counsel; Cynthia
Blackston, chief clerk; and Raymond V. Smietanka, minority coun-
sel.

OPENING STATEMENT OF CHAIRMAN BRYANT

Mr. Bryant. The subcommittee will come to order.

This morning, the Subcommittee on Administrative Law and
Grovemmental Relations is holding a hearing on H.R. 823, the Lob-
bying Disclosure Act of 1993, which is designed to provide for the
effective disclosure of the efforts of paid lobbyists to influence Fed-
eral, legislative, or executive branch officials in the conduct of gov-
ernment actions so that the public can see what influences these
important actions affecting their lives while continuing to afford
the fullest opportunity to the people to exercise their right to peti-
tion their Government for a redress of grievances and to express
their opinions freely and provide information to the Grovemment.

Tlie bill would replace the currently lobbying disclosure laws
with a single, uniform statute, close the loopholes in the existing
disclosure statutes to ensure that all professional lobbyists are reg-
istered, streamline disclosure requirements, and establish a more
effective and equitable system for administering and enforcing the
disclosure rules.

This legislation has been a good example of bipartisan and bi-
cameral cooperation since its introduction in both Houses on Feb-
ruary 4. It has the strong support of the Clinton administration.
We have received a letter this morning, copies of which are avail-
able over on the desk, in support of the legislation, pledging to
work with us even to further strengthen the bill as well, and we
look forward to that and a good deal of additional input from the
Clinton administration.

(1)



[The letter follows:]



THE WHITE HOUSE
WASHINGTON



March 31, 1993



Dear Mr. Chairman:

We in public service have an oppoxrtunity to
reconnect the bonds of trust with the American
people. As I have made clear from the beginning of
my Administration, I believe that political reform
must be a top priority. As part of that effort, I
strongly support the Lobbying Disclosure Act of 1993.

Too often in recent years, our government has
not served the interests of average citizens. One
major reason for this is the disproportionate impact
of lobbyists on the governmental process. Today, by
some estimates, as many as 80,000 people work in
Washington directly or indirectly as lobbyists,
representing organized interests before Congress and
the executive branch. To be sure, lobbying is a
constitutionally protected right, and we do not
propose to limit that right. But we cannot allow the
clamor of organized interests — who too often seek
to preserve the status quo — to drown out the voice
of the broad middle class.

Despite the enormous impact of lobbying, and the
huge sums spent for those purposes, cxirrent laws do
not begin to address the piiblic's questions about
what forces influence policy. Only a small fraction
of individuals who should register under current law
even do so. Disclosure forms are weak, loophole-
ridden and provide meaningless information. Data
regarding lobbying on behalf of foreign interests is
particularly inadequate. And the definitions of
lobbying in cxirrent law have not kept up with the
realities of the labyrinthine regulatory state.

To restore public confidence, then, we must
ensure at a bare minimum that lobbying is fully



disclosed, so the full range of activities of
lobbyists is open to public scrutiny. Toward that
end, I strongly endorse the passage of legislation
that would strengthen and streamline lobbying
disclosure, and that effectively provides the public,
the media and competing interests access to
information about the extent of lobbying.

This legislation would create a comprehensive,
uniform statute covering all professional lobbyists
without regard to which branch of the federal
government they lobby. The bill provides, for the
first time, a broad definition of who is a lobbyist.
It requires that lobbyists identify their clients,
specify on which issues they lobby, and disclose how
much they spent or were paid. At the same time, it
streamlines existing law to make the rules more
comprehensible for individuals who must comply.

In addition, I believe the subcommittee may want
to take steps to strengthen and clarify the bill. My
Administration looks forward to working with the
subcommittee on such improvements.

We cannot settle for business as usual in
Washington; this legislation must be only the
beginning of large scale political reform. My
Administration has already implemented the toughest-
ever restrictions on post "employment lobbying by
senior officials, banning them from lobbying their
agency for five years and from ever serving as a
registered agent for a foreign government. We have
proposed the elimination of the deductibility of
lobbying expenses. This deduction inappropriately
subsidizes organized interests who seek to influence
the legislative process. Finally, we will shortly
propose campaign finance reform legislation that will
further reduce the role of organized interests in the
political system.



I look forward to working with the Congress to
secure speedy enactment of this important
legislation. I appreciate the hard work of the
subcommittee on this issue.

With best wishes,

Sincerely,



The Honorable John Bryant

Chairman

Subcommittee on Administrative

Law and Governmental Relations
House of Representatives
Washington, D.C. 20515



5
[The bill, H.R. 823, follows:]



103d congress
1st Session



H. R. 823



To provide for the disclosure of lobbying activities to influence the Federal
Government, and for other purposes.



IN THE HOUSE OF REPRESENTATIVES

February 4, 1993

Mr. Bryant (for himself, Mr. Gekas, and Mr. Guckman) introduced the

followng bill; which was referred to the Committee on the Judiciary

March 16, 1993
Additional sponsors: Mr. Olver and Mr. Mazzou



A BILL

To provide for the disclosure of lobbying activities to
influence the Federal Government, and for other purposes.

1 Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the "Lobbying Disclosure

5 Act of 1993".

6 SEC. 2. FINDINGS AND PURPOSE.

7 (a) Findings. — The Congress finds that —

8 (1) responsible representative Government re-

9 quires public awareness of the efforts of paid lobby-



2

1 ists tx) influence the public decisionmaking process in

2 both the legislative and executive branches of the

3 Federal Government;

4 (2) existing lobbying disclosure statutes have

5 been ineffective because of unclear statutory lan-

6 guage, weak investigative and enforcement provi-

7 sions, and an absence of clear guidance as to who

8 is required to register and what they are required to

9 disclose; and

10 (3) the effective public disclosure of the identity

11 and extent of the efforts of paid lobbyists to influ-

12 ence Federal officials in the conduct of Government

13 actions will increase public confidence in the integ-

14 rity of Government.

15 (b) Purpose. — The purposes of this Act are to —

16 (1) provide for the disclosure of the efforts of

17 paid lobbyists to influence Federal legislative or ex-

18 ecutive branch officials in the conduct of Govem-

19 ment actions; and

20 (2) afford the fullest opportunity to the people

21 of the United States to exercise their constitutional

22 right to petition their Government for a redress of

23 grievances, to express their opinions freely to their

24 Grovemment, and to provide information to their

25 Government.



•HR 823 SC



3

1 SEC. 3. DEFINITIONS.

2 As used in this Act:

3 (1) The term "agency" has the same meaning

4 as such term is defined under section 551(1) of title

5 5, United States Code.

6 (2) The term "cUent" means any person who

7 employs or retains another person for financial or

8 other compensation to conduct lobbying activities on

9 its own behalf. An organization whose employees

10 conduct lobbying activities on its behalf is both a cli-

1 1 ent and an employer of the lobbyists. In the case of

12 a coalition or association that employs or retains

13 others to conduct lobbying activities on behalf of its

14 membership, the client is the coalition or association

15 and not its individual members.

16 (3) The term "covered executive branch offi-

17 cial" means —

18 (A) the President;

19 (B) the Vice President;

20 (C) any officer or employee of the Execu-

21 tive Office of the President other than a clerical

22 or secretarial employee;

23 (D) any officer or employee serving in an

24 Executive level I, II, HI, IV, or V position, as

25 designated in statute or executive order;

•HR 823 SC



8

4

1 (E) any officer or employee serving in a

2 Senior Executive Service position, as defined

3 under section 3232(a)(2) of title 5, United

4 States Code;

5 (F) any member of the uniformed services

6 whose pay grade is at or in excess of 0-7 under

7 section 201 of title 37, United States Code; and

8 (G) any officer or employee serving in a

9 position of a confidential or policy-determining

10 character under Schedule C of the excepted

11 service pursuant to regulations implementing

12 section 2103 of title 5, United States Code.

13 (4) The term "covered legislative branch offi-

14 cial" means —

15 (A) a Member of Congress;

16 (B) an elected officer of Congress;

17 (C) any employee of a Member of the

18 House of Representatives, of a committee of the

19 House of Representatives, or on the leadership

20 staff of the House of Representatives, other

21 than a clerical or secretarial employee;

22 (D) any employee of a Senator, of a Sen-

23 ate Committee, or on the leadership staff of the

24 Senate, other than a clerical or secretarial em-

25 ployee; and

•HR 823 SC



9

5

1 (E) any employee of a joint committee of

2 the Congress, other than a clerical or secrctar-

3 ial employee.

4 (5) The term "Director" means the Director of

5 the Office of Lobbying Registration and Public Dis-

6 closure.

7 (6) The term "employee" means any individual

8 who is an officer, employee, partner, director, or pro-

9 prietor of an organization, but does not include —

10 (A) independent contractors or other

1 1 agents who are not regular employees; or

12 (B) volunteers who receive no financial or

13 other compensation from the organization for

14 their services.

15 (7) The term "foreign entity" means —

16 (A) a government of a foreign country or

17 a foreign political party (as such terms are de-

18 fined in section 1 (e) and (f) of the Foreign

19 Agents Registration Act of 1938, as aniended

20 (22 U.S.C. 611 (e) and (f)));

21 (B) a person outside the United States,

22 other than a United States citizen or an organi-

23 zation that is organized under the laws of the

24 United States or any State and has its principal

25 place of business in the United States; or

•HR 823 SC



10

6

1 (C) a partnership, association, corporation,

2 organization, or other combination of persons

3 that is organized under the la'v^'s of or has its

4 principal place of business in a foreign country.

5 (8) The term "lobbying acti\-ities" means lobby-

6 ing contacts and efforts in support of such contacts,

7 including preparation and planning acti\ities, re-

8 search and other background work that is intended

9 for use in contacts, and coordination wth the lobby-

10 ing activities of others. Lobbying acti\ities include

11 grass roots lobbying communications (as defined in

12 regulations implementing section 4911(c)(3) of the

13 Internal Revenue Code of 1986) to the extent that

14 such activities are made in direct support of lobby-

15 ing contacts.

16 (9) (A) The term ''lobbving contact" means any

17 oral or ^v^itten communication wth a covered legisla-

18 tive or executive branch official made on behalf of a

19 client with regard to —

20 (i) the formulation, modification, or adop-

21 tion of Federal legislation (including legislative

22 proposals);

23 (ii) the formulation, modification, or adop-

24 tion of a Federal rule, regulation. Executive



•HR 8S3 8C



11



7

1 order, or any other program, policy or position

2 of the United States Government; or

3 (iii) the administration or execution of a

4 Federal program or policy (including the nego-

5 tiation, award, or administration of a Federal

6 contract, grant, loan, permit, or license) except

7 that it does not include communications that

8 are made to officials serving in the Senior Exec-

9 utive Service or the uniformed services in the

10 agency responsible for taking such action.

11 (B) The term shall not include communications

12 that are —

13 (i) made by public officials acting in their

14 official capacity;

15 (ii) made by representatives of a media or-

16 ganization who are primarily engaged in gather-

17 ing and disseminating news and information to

18 the public;

19 (iii) made in a speech, article or other pub-

20 lication, or through the media;

21 (iv) made on behalf of a foreign principal

22 and disclosed under the Foreign Agents Keg-

23 istration Act of 1938, as amended (22 U.S.C.

24 611 et seq.);



•HR 823 SC



12

8

1 (v) requests for appointments, requests for

2 the status of a Federal action, or other similar

3 ministerial contacts, if there is no attempt to

4 influence covered legislative or executive branch

5 officials;

6 (vi) made in the course of participation in

7 an advisory committee subject to the Federal

8 Advisory Committee Act;

9 (vii) testimony given before a committee,

10 subcommittee, or office of Congress, or submit-

11 ted for inclusion in the public record of a hear-

12 ing conducted by such committee, subcommit-

13 tee, or office;

14 (viii) information provided in writing in re-

15 sponse to a specific written request fi-om a Fed-

16 eral agency or a congressional committee, sub-

17 committee, or office;

18 (ix) required by subpoena, civil investiga-

19 tive demand, or otherwise compelled by statute,

20 regulation, or other action of Congress or a

21 Federal agency;

22 (x) made in response to a notice in the

23 Federal Register, Commerce Business Daily, or

24 other similar publication soliciting communica-

25 tions fix)m the public and directed to the agency

•HR 823 SC



13



9

1 official specifically designated in the notice to

2 receive such communications;

3 (xi) not possible to report without disclos-

4 ing information, the unauthorized disclosure of

5 which is prohibited by law;

6 (xii) made to agency officials with regard

7 to judicial proceedings, criminal or civil law en-

8 forcement inquiries, investigations or proceed-

9 ings, or filings required by statute or regula-

10 tion;

11 (xiii) made in compliance with written

12 agency procedures regarding an adjudication

13 conducted by the agency under section 554 of

14 title 5, United States Code, or substantially

15 similar provisions;

16 (xiv) written comments filed in a public

17 docket and other communications that are

18 made on the record in a public proceeding; and

19 (xv) made on behalf of an individual with

20 regard to such individual's benefits, employ-

21 ment, other personal matters involving only

22 that individual, or disclosures by that individual

23 pursuant to applicable whistleblower statutes.

24 (10) The term "lobbyist" means any individual

25 who is employed or retained by another for financial



14



10

1 or other compensation to perform services that in-

2 elude lobbying contacts, other than an individual

3 whose lobbying activities are only incidental to, and

4 are not a significant part of, the services provided by

5 such individual to the client.

6 (11) The term "organization" means any cor-

7 poration (excluding a (rovemment corporation), com-

8 pany, foundation, association, labor organization,

9 firm, partnership, society, joint stock company, or

10 group of organizations. Such term shall not include

11 any Federal, State, or local unit of government

12 (other than a State college or university as described

13 under section 511(a)(2)(B) of the Internal Revenue

14 Code of 1986), organization of State or local elected

15 or appointed officials, any Indian tribe, any national

16 or State political party and any organizational unit

17 thereof, or any Federal, State, or local unit of any

18 foreign government.

19 (12) The term "public official" means any

20 elected or appointed official who is a regular em-

21 ployee of a Federal, State, or local unit of govem-

22 ment (other than a State college or university as de-

23 scribed under section 511(a)(2)(B) of the Internal

24 Revenue Code of 1986), an organization of State or

25 local elected or appointed officials, an Indian tribe,

•HR 823 8C



15



11

1 a national or State political party or any organiza-

2 tional unit thereof, or a Federal, State, or local unit

3 of any foreign government.

4 SEC. 4. REGISTRATION OF LOBBYISTS.

5 (a) Registration. — (1) No later than 30 days after

6 a lobbyist first makes a lobbying contact or agrees to make

7 lobbying contacts, such lobbyist (or, as provided under

8 subsection (c)(2), the organization employing such lobby-

9 ist), shall register with the Office of Lobbying Registration

10 and Public Disclosure.

11 (2) Notwithstanding paragraph (1), any person

12 whose total income or total expenses in connection with

13 lobbying activities on behalf of a particular client do not



Online LibraryUnited States. Congress. House. Committee on the JLobbying Disclosure Act of 1993 : hearing before the Subcommittee on Administrative Law and Governmental Relations of the Committee on the Judiciary, House of Representatives, One Hundred Third Congress, first session, on H.R. 823 ... March 31, 1993 → online text (page 1 of 27)